Question 32 (10 points) Consider the wage of Gabriel, which is presently $22 per hour, but was $20 five years ago. Inflation rates for the past 5 years were 2.5%, 1.9%%, 2.2%%, 2.79%, and 3.1%. a) In real terms, does Gabriel now earn more or less than 5 years ago? b) How much was the inflation rate over the entire 5-year period? c) If the CPI was 112.5 in the first year, how much is it today? d) Suppose Alexander and Sophia meet with Morgan, their banker, to work out the details of a mortgage, They all expect that inflation will be 2% over the term of the loan, and they agree on a nominal interest rate of 7%%, As it turns out, the inflation rate is 3 percent over the term of the loan. What was the expected real interest rate? What was the actual real interest rate? Who benefitted and who lost because of the unexpected inflation